Question

At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $13.7 million. $10.7 million...

At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $13.7 million. $10.7 million of the purchase price was allocated to the building. Depreciation for 2016 and 2017 was calculated using the straight-line method, a 20-year useful life, and a $2.7 million residual value. Assume that 2016 depreciation was incorrectly recorded as $40,000. This error was discovered in 2018.

How should Robotics account for the error?
What is depreciation on the building for 2018 assuming no change in estimate of useful life or residual value?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $12.1 million. $9.1 million...
At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $12.1 million. $9.1 million of the purchase price was allocated to the building. Depreciation for 2016 and 2017 was calculated using the straight-line method, a 20-year useful life, and a $1.1 million residual value. In 2018, the company switched to the double-declining-balance depreciation method. What is depreciation on the building for 2018? (Do not round intermediate calculations. Round answer to the nearest whole dollar.)
At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $13.3 million. $10.3 million...
At the beginning of 2016, Robotics Inc. acquired a manufacturing facility for $13.3 million. $10.3 million of the purchase price was allocated to the building. Depreciation for 2016 and 2017 was calculated using the straight-line method, a 25-year useful life, and a $2.3 million residual value. In 2018, the estimates of useful life and residual value were changed to 20 total years and $630,000, respectively. What is depreciation on the building for 2018? (Round answer to the nearest whole dollar.)...
At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $13.0 million. $10.0 million...
At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $13.0 million. $10.0 million of the purchase price was allocated to the building. Depreciation for 2019 and 2020 was calculated using the straight-line method, a 20-year useful life, and a $2.0 million residual value. In 2021, the estimates of useful life and residual value were changed to 15 total years and $600,000, respectively. What is depreciation on the building for 2021?
Genco Manufacturing purchased a piece of equipment on July 26th, 2016, at a cost of $72,000....
Genco Manufacturing purchased a piece of equipment on July 26th, 2016, at a cost of $72,000. The estimated residual value is $5,400 with a useful life of 5 years. Assume a production life of 60,000 units. Compute the depreciation for years 2016 and 2017 using the two depreciation methods below; Straight Line Method Units-of-production (in 2016, there was 5,000 units produced, and in 2017, there were 18,000 units produced).
a building acquired at the beginning of the year at a cost of 67600 has an...
a building acquired at the beginning of the year at a cost of 67600 has an estimated residual value of $2600 and an estimated useful life of ten years. determine the following: a) depreciation cost b) the straight line rate c) the annual straight line depreciation
On January 1, 2016, Nobel Corporation acquired machinery at a cost of $1,600,000. Nobel adopted the...
On January 1, 2016, Nobel Corporation acquired machinery at a cost of $1,600,000. Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2019, a decision was made to change to the double-declining balance method of depreciation for this machine. Assuming a 30% tax rate, the cumulative effect of this accounting change on beginning retained earnings, is: Select one: A....
On January 1, 2016, Shoreham, Inc. acquired an equipment for $45,600. The estimated life of the...
On January 1, 2016, Shoreham, Inc. acquired an equipment for $45,600. The estimated life of the equipment is 6 years, with an estimated residual value of $2,400. In its financial statements, Shoreham uses straight-line depreciation. The ending balance of accumulated depreciation at December 31, 2017, will be: $15,200 $7,200 $7,600 $14,400
A building acquired at the beginning of the year at a cost of $108,200 has an...
A building acquired at the beginning of the year at a cost of $108,200 has an estimated residual value of $4,200 and an estimated useful life of 10 years. Determine the following: (a) The depreciable cost $ (b) The straight-line rate % (c) The annual straight-line depreciation $
​Carpenters, Inc., a manufacturing​ company, acquired equipment on January​ 1, 2017 for $550,000. Estimated useful life...
​Carpenters, Inc., a manufacturing​ company, acquired equipment on January​ 1, 2017 for $550,000. Estimated useful life of the equipment was seven years and the estimated residual value was $16,000. On January​ 1, 2020, after using the equipment for three​ years, the total estimated useful life has been revised to nine total years. Residual value remains unchanged. The company uses the straight minus−line method of depreciation. Calculate depreciation expense for 2020.​ (Round any intermediate calculations to two decimal​ places, and your...
The Peridot Company purchased machinery on January 2, 2016, for $810,000. A five-year life was estimated...
The Peridot Company purchased machinery on January 2, 2016, for $810,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded $162,000 in depreciation in 2016 and 2017. Early in 2018, the company revised the total estimated life of the machinery to eight years. Determine depreciation for 2018.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT